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    ESMA Launches EU Green Bonds External Reviewers Consultation

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    Stockholm (NordSIP) – Following the adoption of the European Green Bonds (EuGB) standard, the European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, was required to develop a series of regulatory technical standards (RTS) and implementing technical standards (ITS) to facilitate the application of the EuGB in practice.

    Although the Consultation Paper is aimed at future external reviewers of green bonds and sustainable debt and sustainability assurance providers, ESMA is also interested in hearing from relevant investors, issuers, and trade associations.

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    The Consultation

    To this end, ESMA has launched a Consultation on Draft RTSs related to the registration and supervision of external reviewers under the EuGB. ESMA’s proposals relate to the registration and supervision of entities interested in becoming external reviewers of EU Green Bonds and aim to clarify the criteria used for assessing an application for registration by an external reviewer. In its proposals, ESMA aims to standardise registration requirements and contribute to developing a level playing field through lower entry costs for applicants.

    This consultation package covers requests for feedback on four draft RTS and one ITS. The proposals cover the criteria in the assessment of four aspects of the activities of external green bond reviewers, namely:

    • senior management, board members and analytical resources;
    • sound and prudent management, including avoidance of conflicts of interest;
    • knowledge and experience of analysts; and
    • the outsourcing of assessment activities, forms, templates.

    Finally, the ITS part of the consultation provides the standard forms, templates and procedures for the provision of registration information.

    Next steps 

    The EuGB entered into force on 21 December 2023 and will apply from 21 December 2024. ESMA will consider the feedback received to this consultation and will submit the draft RTS and ITS to the European Commission by 21 December 2024.

    ESMA is expected to publish another consultation on the remaining technical standards of the EuGB regulation at some point between March and June 2025.

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